Bloomberg Reports JP Morgan's Crypto Fake Boosts Bitcoin Price

Bloomberg reports outrageously that the launch of JP Morgan's new cryptocurrency is driving up bitcoin prices.

This reveals a lack of epic understanding by the mainstream media and the financial sector in general. And it's a bad service for those who rely on traditional financial media to get reliable information.

The story credits the weak analysis of Etoro analyst, Mati Greenspan:

"What some people have pointed out is that [JP Morgan is] using distributed ledger technology and they call it a cryptocurrency, which could have a positive effect on the industry. "

Latest news on JPMCoin

The Bloomberg story is only the latest in a long list of imprecise and improvident headlines around the launch of JP Morgan cryptography.

That of Baron is particularly laughable: JPMorgan has just killed the dream of Bitcoin.

But The Washington Examiner is also wrong with JPMorgan's alternative to Bitcoin.

The JP Morgan digital piece "JPMCoin" has nothing to do with bitcoin. It can not be a "killer" or an "alternative" bitcoin if it has a function and a background so different.

Let's go back …

JP Morgan shocked the financial sector last week by launching JPMCoin – the first native cryptocurrency issued by a major bank.

Except it's a cryptocurrency by name only.

Attached to the value of the dollar, JPM Coin is essentially a stable piece. The bank will use it to instantly settle payments between customers. In addition, it could be used to digitize securities such as stocks and bonds.

The irony of JP Morgan's launch of cryptocurrency has not been lost to the crypto community. Famous JP Morgan boss Jamie Dimon called bitcoin "fraud" while building his own cryptocurrency behind the scenes.

JPMCoin has not increased the price of bitcoin

The title of Bloomberg tries to bring together two totally disconnected events. The price of Bitcoin has reached $ 4000 and the launch of JP Morgan's cryptocurrency.

The truth is that JPM's corner has nothing in common with bitcoin. This is not a threat for Bitcoin, nor any attribute that can support the price of Bitcoin.

As the Bloomberg chart clearly shows, bitcoin was boosted four days after JP Morgan's announcement on February 14. Four days!

The analysis clearly ignores other fundamental catalysts for the rise in Bitcoin prices. For example, a major wealth manager for pension funds has just recommended the allocation of bitcoins. Nasdaq launches a bitcoin price index. The Bitcoin Lightning Network innovates. Not to mention the basic technical indicators behind the Bitcoin rally.

JPMCoin is not a cryptocurrency

To credit JPMCoin of the price increase of Bitcoin is to misunderstand what JPMCoin is.

JPMCoin has nothing to do with bitcoin. It is built on a private blockchain. It requires an authorization to use it. Its price is indexed to a fiduciary counterparty. It's centralized, not decentralized. It relies on a trusted third party.

That's all against which Bitcoin is fighting. As Jerry Brito, executive director of the Coin Center research group, explains:

"[It’s] the same distinction between AOL and the Internet. Since the Internet is open, anyone wishing to create a blog, a website or a consumer service can connect a server to the network without asking permission from anyone. Compare that to AOL. It was an authorized network where, if you were an editor, you had to go to the company for permission. "

The launch of JP Morgan is a clear sign that the banking sector is threatened by the rise of bitcoin. Aging institutions are struggling to stay relevant with weak replicas of blockchain technology.

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